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An overview of the prospects for financing small and medium agribusiness in the framework of

On 09 Jun 2016 Agroprosperis Bank took part in the conference "Ukrainian agrarian platform – 2016", which was held in the framework of Ukraine's largest agro-industrial exhibition "Agro-2016" and was dedicated to the problems and peculiarities of functioning of small and medium business in the agrarian sector.

Financing small and medium farmers is a top priority and a key focus of Agroprosperis Bank, that is why the Bank active cooperates with farmers, state institutions, international and industry organizations with the aim of quality development of Ukrainian agriculture.

A number of important issues were discussed during the conference, in particular, access of small and medium agricultural producers to the world markets, nuances of crop insurance, features of functioning of agricultural cooperatives, realities of the land reform. However, the greatest attention was paid to the issue of agricultural production financing, which still remains the most critical issue for small and medium business.

The total demand in financing of agricultural producers is estimated at $ 10 billion. However, the existing amount of financing is given to large companies and agricultural holdings, leaving most of small and medium-sized farmers aside. According to Agroprosperis Bank, limited banks' lending to small and medium business is generated by the lack of mutual trust between the parties. Not trusting the borrower, banks set too tough collateral requirements, which small and medium-sized farmers are virtually unable to satisfy.

Agroprosperis Bank, understanding the specifics of agribusiness from the inside and having well-developed agricultural expertise, builds partnership relations with farmers and provides them with a simplified funding secured exclusively by future harvest – the main asset of a farmer.

Financing secured by the future crop became possible due to the introduction of the innovative tool – crop receipts, which provide equal and mutually beneficial conditions for both parties of the deal. Progress and prospects of crop receipts in Ukraine were highlighted at the conference by the International Finance Corporation, a manager of the project "Crop receipts in Ukraine."

At the event, the participants exchanged practical experience, examined the challenges and obstacles in doing business and outlined the following steps to simplify operation and improve efficiency in the agricultural sector of Ukraine.

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